Beware of Fake Debt Relief or Credit Repair Agencies

Posted on: Apr 12, 2018

Living in debt can put a lot of strain on your personal life, your marriage, productivity at work, and event the way you relate with other people such as your children if you are a parent. The stress of making ends meet is more real than anything you have ever encountered as an adult and it will eventually take its toll on your body and mental health. Credit Counseling is a great way to help you get back on track.

A lot of Americans accumulate debt because of bad decisions and the mishandling of personal finances. Debt can also be the result of overspending or simply spending money on something that you really cannot afford. Sometimes, you may not realize it but you are trying to live a lifestyle that you cannot afford due to the pressure you may be experiencing from different aspects of your life.

In your desire to finally iron out your financial status by first getting rid of your debt, the tendency is for you to turn to debt relief or credit repair agencies. The tricky part is identifying who among the thousands operating in the United States are really legitimate. It is vital to do some background checking on the agency before giving its staff your full trust.

According to a Wise Bread article published this January, the Federal Trade Commission issued a survey done in 2013 that showed surprising revelations. According to FTC, among the 25 million Americans who were victims of fraud, 1.5 million individuals were scammed by debt relief while 1.7 million fell victims to credit repair scams.

The article further revealed that the FTC has given out warnings to help Americans differentiate between scammers and legitimate debt relief or credit repair agencies such as Credit Advisors Council. You should take note of companies who insist that you need to put out a certain amount of money right away in order for them to begin the work they promised to do on your behalf.

Be wary of agencies that require you not to make any contact with credit reporting companies at all. Quite obviously, they want these companies to be blind to their schemes. Be careful as well if these agencies start suggesting that you question accurate information on your credit report. The next thing you know, they are asking you to misrepresent yourself in your application for a loan or additional credit line.

And of course, you always want to work with someone who prioritizes educating you about your basic legal rights when it comes to availing of their services. A professional organization understands that clients need to be properly informed so that they can make sound decisions concerning their needs. In the absence of this simple act of making you understand the legal protection you deserve, you need to pause and ask yourself if this company is really authentic.

Seeking the proper help to get out of debt is a must when handling very big amounts. Exercise a lot of caution, however, as there are those who take advantage of the desperate need of other people in order to gain money.

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